Until two weeks ago……

The Arab region is experiencing exponential growth in wealth, fueled largely by global increases in the price of oil and gas.

Over $2.6 B per day flow into the Gulf region in petroleum revenues alone. (June, 2008)

Arab gulf countries currently invest $3 trillion through sovereign wealth funds.

Qatar spends more of GDP on R and D investments than the US (2.8%)

One Dubai company, Emaar, has $60 B in real estate investments in the region

Non oil-producing countries like Jordan and Egypt are attractive ‘emerging markets’ with local business expertise & management

Explosive Social Problems

• 55 % under age 25, poorly educated, high unemployment, “stalled” youth

• Growing disparities of wealth and poverty

• Unresolved conflicts (Arab-Israeli, sectarian, tribal, and ethnic strife)

•Massive population displacement

Sole reliance on governments and foreign donors for solutions is no longer feasible nor desirable. Citizens are seeking new ways to contribute to

the development of their societies, through community initiatives, service organizations, and

more effective utilization of their philanthropic giving.

Philanthropy in Social Context

Market capitalism treats social responsibility as a short-term cost with potential long term benefit. Islamic economics conceives of it as integral to an Islamic system of economics– a moral as well as financial framework that supports the disadvantaged through the compassion of those who succeed. Individuals who do well must put aside income for charitable purposes.

Philanthropy in Islamic Context

Based on concept of takaful (social solidarity)

Zakat (obligatory alms)

Sadaqa (voluntary giving)

Waqf (trust or endowment)

Qurd al-hassan (interest free loans)

Islam is not opposed to personal wealth, but to accumulation at others expense.

Study Definition of ‘New’ Philanthropy:

The institutionalized pooling and distribution ofprivate resources with the goal of buildingcapacity, sustainable financing and expertise forlong term societal benefit.

Strategic Philanthropy

Social investments that leverage systematicchange, maximize impact and aim to solveimportant problems through addressing rootcauses

Study Design

1. Gerhart Center conceptualizes framework and key issues

3. Extensive secondary desk research by country

4. Consultation with country experts

5. Collection of field data and case studies

2 .Recruitment and orientation of researchers

6. Analysis workshops, writing, chapter reviews and revision

7 .Series of meetings to outline important recommendations

8. Writing and review of the introductory and concluding chapters

Countries Covered in First Phase

Jordan

Egypt

Kuwait Lebanon

Palestine

Qatar

Saudi Arabia United Arab Emirates

Arab Philanthropy is Becoming More Institutional

Waqf, Mabarra, or Birr reinvent classic forms

Individual or Family Foundations sustain a lasting legacy

“Shilla” Foundations citizen business leaders for change

Corporate Foundations formalizing corporate responsibility

Community Foundations pooling small funds from like-minded contributors

Trends in Arab Philanthropy

II. From the responsibility to give

To responsibility to make a difference

III. From personal generosity

To institutional effectiveness

IV. From working alone (“my organization did…”)

To working in partnerships (“we leveraged access…”)

V. From inefficiently kind

To well-managed for impact (and kind)

Trends…

VI. From meeting immediate needs (food, clothing, medicine)

To alleviating core problems (jobs, education, votes)

VII. From investing for profits today (luxury marketing)

To investing for economic growth tomorrow (pro-poor business strategies)

VIII. From leisure class pastime

To citizen-business leaders’ commitment

Trends…

Citizen Business Leaders – Who are they?

Highly successful, often second-generation businessmen and women

Young – 30s and 40s when they begin

Highly educated (Europe and North America)

Globally invested and connected

Bringing economic models to social objectives

Work with each other more easily than in civil society partnerships

Corporate Responsibility Still in its infancy stage – more PR than CSR

Growing rapidly with steep learning curve

Huge Gulf potential given scale of resources

Economic and environmental sustainability are key

Weakness is labor practices

Need to connect local business to regional giants

Future Directions

Rulers as philanthropic role models

modeling giving, volunteering, organizing

Public-Private partnerships

government & private actors join forces

Venture Philanthropists meet community activists

apply business principles and personal engagement to create reform

Challenges to Greater Effectiveness

Legal and Policy Environments restrict social investment of greater assets

Tax incentives to give are absent, undeveloped or unknown

Traditions of secrecy carry over to modern institutions, inhibiting transparency, documentation, and sharing of best practice

Challenges to Greater Effectiveness

Fields of work are “bunched” around children, health, education/employment, disability, widows and orphans

Important development fields are underserved, including arts and culture, rights and empowerment, minority relations and governance.

Appreciation and Thanks

To the Boeing Corporation, Middle East for supporting the study To The Ford Foundation, Middle East and North Africa for

core support to the Gerhart Center.

Appreciation to my fellow report authors:

Mona Atia, Mahi Khallaf, Hadeel Qazzaz, Fadi Sharaiha, Karim Shalaby ,

And the Study Coordinator and author Dina Sherif.